Turners Automotive Confirms Fully Franked Dividend and DRP Strike Price
Turners Automotive Group has updated its dividend announcement, revealing a fully franked ordinary dividend and detailing the strike price for its Dividend Reinvestment Plan.
- Ordinary dividend of NZD 0.07 per share, fully franked
- Supplementary dividend of NZD 0.01235 per share, unfranked
- Dividend Reinvestment Plan (DRP) offers 2% discount on share price
- DRP shares to be issued on 30 October 2025
- No external approvals required for dividend payment
Dividend Update and Payment Details
Turners Automotive Group Limited (ASX, TRA) has provided an update to its recent dividend announcement, clarifying key details for shareholders ahead of the upcoming payment. The company declared an ordinary dividend of NZD 0.07 per share for the quarter ending 30 June 2025, which is fully franked, reflecting the company’s strong tax position and consistent profitability. In addition, a supplementary dividend of NZD 0.01235294 per share will be paid, which is unfranked.
The record date for entitlement to the dividend is set for 14 October 2025, with the payment scheduled for 30 October 2025. Importantly, no external approvals such as shareholder or court approvals are required, streamlining the process for investors.
Dividend Reinvestment Plan Details
Turners Automotive also confirmed the terms of its Dividend Reinvestment Plan (DRP), which remains fully available to shareholders. The DRP allows investors to reinvest their dividends into new shares at a discounted price, providing an attractive option for those looking to compound their investment.
The strike price for the DRP shares is set at NZD 7.18, calculated as the volume weighted average sale price on the NZX over five trading days starting from the ex-dividend date, less a 2% discount. This discount is designed to incentivize participation in the plan. New shares issued under the DRP will rank equally with existing shares and are expected to be allotted on 30 October 2025.
Implications for Investors
This update provides clarity and confidence for Turners Automotive shareholders regarding their income stream and reinvestment opportunities. The fully franked nature of the ordinary dividend is particularly appealing to investors seeking tax-effective income, while the supplementary dividend adds incremental value.
Moreover, the DRP’s discount and straightforward terms may encourage higher participation rates, potentially reducing the need for the company to raise capital externally. This balance between rewarding shareholders and maintaining financial flexibility is a positive signal for the company’s ongoing strategy in the automotive retail sector.
Bottom Line?
As Turners Automotive finalises its dividend payment and DRP issuance, investor focus will turn to participation levels and market response.
Questions in the middle?
- What will be the uptake rate of the Dividend Reinvestment Plan among shareholders?
- How will the supplementary dividend impact overall shareholder returns?
- Could the DRP discount influence Turners Automotive’s share price performance post-ex dividend date?